Larger Legacy · NMLS #1812066
Reverse Mortgage Calculator
Educational HECM estimate for homeowners 62+ — not a loan offer
If you are 62 or older and own your home, a reverse mortgage calculator can help you explore a ballpark HECM (Home Equity Conversion Mortgage) estimate—before you talk with a loan officer or complete HUD-approved counseling.
This tool is for education only. It is not a loan offer, rate quote, or promise of approval. Actual proceeds depend on your age, home value, existing liens, interest rates, and FHA rules at the time you apply. Larger Legacy (a division of Jay Dacey Mortgage Team, NMLS #1812066) is licensed in Minnesota, Wisconsin, Florida, and North Dakota.
Use the calculator below, then request a free personalized illustration if you want numbers reviewed for your situation.
HECM proceeds estimate
Enter age, home value, payoff, and expected rate inputs. Estimates use HUD-style principal limit factors, the 2026 FHA claim limit of $1,249,125, a 2% upfront MIP, and HUD’s origination-fee cap.
HECM borrowers must be 62+.
Paid off at closing from HECM proceeds when possible.
Loading live 10-year Treasury index…
Educational assumption only (0–6%) — not a forecast of home prices.
Integer 5–20; used for term monthly payment and over-time projections.
Title, counseling, recording, and similar (estimate).
Expected rate: 7.25% (index + margin). Uses the 2026 FHA HECM maximum claim amount of $1,249,125 as a program cap; limits change and this is not an amount you are entitled to.
Available at close
$75,875
Net funds as cash, a line of credit, or monthly checks.
Educational estimate only — not approval, a rate quote, or a loan offer.
Open full pagePrincipal limit
$174,375
PLF 38.8%
Year-1 cash
$17,438
After the 60% rule
Tenure monthly
$554
For life in the home
How this reverse mortgage calculator works
Age 62+
Uses the youngest borrower age (or eligible non-borrowing spouse context in a full illustration). Standard HECM eligibility starts at 62.
Home value & liens
Principal limit is based on the lesser of home value and the FHA claim limit, then reduced by existing mortgage payoff and typical financed closing costs.
Rates & limits
Expected rate (index + margin) drives the approximate PLF. MIP, HUD origination caps, and the first-year 60% disbursement rule apply. Figures are approximate.
State and property context matter. Closing costs, counseling, and current FHA tables can change actual results. Take the 10-question fit quiz if you want a quick read on occupancy, taxes, heirs, and counseling.
Who you are talking with
Larger Legacy is a division of Jay Dacey Mortgage Team, Inc., NMLS #1812066, based in Little Canada, Minnesota. Jay Dacey NMLS #375033. Ben Bina NMLS #2729340. Licensed in Minnesota, Wisconsin, Florida, and North Dakota. Equal Housing Lender.
We are not a government agency. A reverse mortgage is not free money from the government. Borrowers remain responsible for property taxes, homeowners insurance, and home maintenance. The home must remain the primary residence. Independent HUD-approved counseling is required before a HECM can close.
Reverse mortgage calculator FAQ
How accurate is this reverse mortgage calculator?+
This tool is for education only. It uses approximate HUD-style principal limit factors, the 2026 FHA claim limit, typical MIP and origination assumptions, and simplified payment math. It is not a rate quote, loan offer, or underwriting decision.
Does an estimate mean I am approved?+
No. An estimate is not approval. Actual proceeds depend on age, home value, existing liens, interest rates, appraisal, title, occupancy, FHA rules at application, and lender overlays.
Do I still pay property taxes and insurance?+
Yes. With a HECM there is no required monthly mortgage payment, but you remain responsible for property taxes, homeowners insurance, and maintaining the home (plus HOA dues if applicable).
Is HUD counseling required?+
Yes. Independent HUD-approved counseling is required before a HECM can close. Counseling helps you understand options, costs, and obligations.
What is the difference between a line of credit and a lump sum? What about year-one limits?+
You may take proceeds as a line of credit, lump sum, monthly tenure/term payments, or a combination (product and rate type permitting). In the first year, initial disbursements are generally limited—commonly to 60% of the principal limit, with room for mandatory obligations such as paying off an existing mortgage and financed closing costs.
Where is Larger Legacy licensed, and will a person review my numbers?+
Larger Legacy (Jay Dacey Mortgage Team, Inc., NMLS #1812066) is licensed in Minnesota, Wisconsin, Florida, and North Dakota. After you run the calculator, you can request a free personalized illustration so a loan officer can review numbers for your situation.
What are my next steps?+
Use the calculator, take the fit quiz if helpful, then request a free quote, contact the team, or call (651) 315-7681. Adult children are welcome to join. There is no obligation.